<p>Renting and sharing are prevalent practices in informal settlements worldwide. This trend has risen significantly as one-sixth of the global population resides in such areas. Dhaka, the world’s seventh most densely populated city, contains numerous informal settlements characterized by overcrowding and sharing spaces, including rooms and services. Around 80% of informal settlement households live in one room, sharing toilets and kitchens with other families.&#xa0;Often, multiple single households share one room, even one bed. Scholarly arguments highlight that although these overcrowding situations are subject to unhealthy and chaotic environments, the characteristics of informal settlements can encourage scope for social interaction, which ultimately creates social support and well-being factors. Other studies show that the physical environment of houses influences inhabitants’ well-being, an essential feature of quality urban living. However, the well-being in informal settlements is under-discussed in architecture and urban studies literature. This research considers shared living as a characteristic of informal settlement in Dhaka, Bangladesh, and explores the impact of a shared living environment on the well-being of the residents in question. A qualitative approach, employing a mixed-analysis method, was used to understand how people adapted to shared accommodation, and to compare dwellers' positive and negative feelings regarding the extent of sharing. The results indicate that the inhabitants positively adapt to their shared living environment. This outcome recommends considering a shared housing model inspired by an existing informal settlement as a compact urban housing solution where space scarcity is a primary concern.</p>